RBI Governor Raghuram Rajan stated that India's economy lost momentum in Q3.
RBI Governor Raghuram Rajan stated that India's economy lost momentum in Q3.
The December calm in global financial markets – suggesting that the normalisation of US monetary policy was fully anticipated – was dispelled in January 2016 by fears of further weakening of the Chinese economy and depreciation of Renminbi. Capital outflows from China triggered sell-offs across AEs and EMEs, exacerbating currency declines and heightening volatility.
Crude oil prices fell below US$30 per bbl- a 12-year low –on expectations of Iran adding to the supply glut. Prices of gold prices and US Treasuries hardened on safe haven demand. Financial markets remain vulnerable to bouts of volatility and capital outflows from EMEs as an asset class. Bearish commodity price dynamics are also likely to impact investor sentiment.
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